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Supply Chain

Tyson Foods To Resume Limited Production At Largest US Pork Plant

By Dayeeta Das
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Tyson Foods To Resume Limited Production At Largest US Pork Plant

Tyson Foods Inc will resume limited production at its largest US pork plant this week, the company said, a week after President Donald Trump ordered companies to keep meat-processing plants open to protect the supply chain.

The company closed two pork processing plants, including the Iowa plant, to contain the spread of the coronavirus, further tightening meat supplies after other major slaughterhouse shutdowns.

The virus outbreak has forced meat-processing companies, including Smithfield Foods Inc, Cargill Inc, JBS USA, to halt production at about 20 slaughterhouses and plants in North America as workers fall ill.

Some restaurant chains including Shake Shack Inc said their supply chains remain strong, but expect beef prices to increase.

Limits On Meat Purchases

Several retailers such as Costco Wholesale Corp and Kroger Co put limits on meat purchases and burger chain Wendy's Co said it was limiting its menu at some locations.

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Trump's order last week sparked some backlash from unions and lawmakers over the safety of meat-plant workers.

Tyson said that all employees returning to work had been tested for COVID-19 and anyone who tested positive would remain on sick leave until allowed by health officials to return to work.

The company also increased short-term disability coverage for employees to 90% of normal pay until 30 June, adding it had performed an additional deep clean and sanitisation of the entire Waterloo facility while the plant was idled.

The plant, which will resume operations on 7 May (Thursday), had been working at reduced capacity before it was shut late last month.

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As summer approaches and demand for meat increases, plant-based meat burger makers Beyond Meat Inc and Impossible Foods are expanding their presence in US retail stores and offering discounts, hoping to replace meat patties with the vegan alternative.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

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